National Public Finance Guarantee Corp. Study Expects Revenue Pressures to Lead to an Acceleration of Consolidation in the

ARMONK, N.Y.--(BUSINESS WIRE)-- National Public Finance Guarantee Corp. (“National”) today released a study on the operating environments of our nation’s not-for-profit, acute care hospitals in light of current and impending changes due to health care reform. The study concludes that, despite its current state of relative stability, not-for-profit hospitals will experience more volatile revenues leading to an acceleration of consolidations as weak or poorly positioned hospitals struggle to stay relevant in the face of sweeping change.

“As providers brace for the full impact of health care reform in 2014, many hospitals are taking proactive measures to rein in expenses and improve quality while testing new delivery system methodologies,” said Karleen Strayer, Managing Director at National Public Finance Guarantee. “These are the providers who will benefit from reform. On the other hand, less successful providers with operational and budget deficiencies may be forced to align with stronger participants in order to survive.”

The study provides an in-depth look at the dramatic changes sweeping the sector and the opportunities these changes present. In addition, a review of the effects of the recession on the health care sector is followed by a discussion of the Affordable Care Act and its implementation. The study also discusses the factors National deems important in analyzing health care credits. A summary of key credit metrics for issuers represented in National’s top 20 exposures is included.

National’s measured approach to underwriting allows the company to identify the underlying strengths and weaknesses of these credits and to selectively insure those that satisfy its strict analytical guidelines. Over the past three decades, National and its predecessors have provided insurance policies totaling $93 billion to the health care sector, giving the company unique insight into the sector’s strengths and challenges.

The new study can be found on National’s website at www.nationalpfg.com, along with other sector studies covering Puerto Rico, Toll Roads, Public Power, Airports, Military Housing, California Redevelopment & Tax Allocation Bonds and Higher Education, among others.

National, headquartered in Armonk, New York, is the world’s largest U.S. public finance-only financial guarantee insurance company, with offices in New York and San Francisco. The company’s financial strength is highlighted by its $5.6 billion in claims-paying resources, $2.5 billion in statutory capital and strong embedded profitability from its $475 billion insured portfolio and $5.4 billion investment portfolio as of March 31, 2011.

Forward-Looking Statements

This release includes statements that are not historical or current facts and are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “believe,” “anticipate,” “project,” “plan,” “expect,” “intend,” “will likely result,” “looking forward” or “will continue,” and similar expressions identify forward-looking statements. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. These risks and uncertainties could affect financial performance or could cause actual results to differ materially from estimates contained in or underlying the MBIA Inc.’s or National’s forward-looking statements are discussed under the “Risk Factors” section in MBIA Inc.’s most recent Annual Report on Form 10-K, which may be updated or amended in MBIA Inc.’s subsequent filings with the Securities and Exchange Commission. MBIA Inc. and National caution readers not to place undue reliance on any such forward-looking statements, which speak only to their respective dates. National and MBIA Inc. undertake no obligation to publicly correct or update any forward-looking statement if it later becomes aware that such result is not likely to be achieved.



CONTACT:

National Public Finance Guarantee Corp.
Media:
Kevin Brown, +1-914-765-3648
or
Elizabeth James, +1-914-765-3889
or
Investor Relations:
Nick Sourbis, +1-914-765-3385

KEYWORDS:   United States  North America  New York

INDUSTRY KEYWORDS:   Health  Hospitals  Other Health  General Health  Managed Care

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